Finnfund announces successful completion of multi-tranche green and sustainable bond offering

Finnfund, a Finnish development financier and impact investor, issues nearly EUR 200 million of green and sustainable bonds in four tranches. The transaction includes USD 50 million Green Bond due 2035 (4.75% coupon), EUR 28 million Sustainable Bond due 2032 (3% coupon), EUR 60 million Sustainable Bond due 2040 (3.5% coupon) and EUR 65 million Sustainable Bond due 2055 (3.6% coupon).

The bond represents Finnfund’s first multi tranche issuance and includes longest ever maturity issued under its Sustainability Bond Framework established in September 2022. This transaction attracted interest from the highest quality pension funds and insurance companies.

“Successful issuance demonstrates strong interest towards Finnfund and credit investors’ commitment to support impact investing. All the investors in these tranches were international institutional investors from Asia and Europe. We are proud of Finnfund’s ability to acquire funds in different currencies and ultra-long maturities from the markets. Pricing was close to sovereign levels, again demonstrating Finnfund’s reputation as a sustainable investor,” says Finnfund´s Chief Financial Officer Olli Sinnemaa.

The proceeds from the issue will be used in accordance with the green and social project categories of Finnfund’s Sustainability Bond Framework to finance and/or refinance eligible green and social lending, equity investments, and mezzanine financing mainly targeting the objective of climate change mitigation and adaptation and/or improved living and health conditions for unserved groups.

Net proceeds will be allocated to eligible projects with the objective to mobilise debt capital to support Finnfund’s mission to generate lasting impact by investing in businesses that solve global development challenges.

“In addition, it contributes to Finnfund’s goal to foster sustainable development by providing investment opportunities for private investors. We have set a goal of increasing the proportion of private capital in our financing to at least 50 percent by 2030. Mobilising private capital is key to achieving the UN Sustainable Development Goals (SDGs) in developing countries, given that the UN estimates the financing gap at USD 2.5 trillion per year,” says Sinnemaa.

Sustainable, innovative companies and investors play a key role in solving both local and global challenges, such as mitigating and adapting to climate change and preventing biodiversity loss.

Jefferies GmbH acted as the Sole Arranger and Lead Manager in connection with the issue of the bond.

To follow the work within sustainable finance and to access the Sustainability Bond Framework, the Second Party Opinion and the Sustainability Bond Reports, please visit:

Finnfund Sustainability Bond – Finnfund

More information:

Olli Sinnemaa, Chief Financial Officer, tel. +358 50 422 6478, olli.sinnemaa@finnfund.fi

Unna Lehtipuu, Communications and Public Affairs Director, tel. +358 40 624 0896, unna.lehtipuu@finnfund.fi (media contacts)

Finnfund is a Finnish development financier and impact investor. We build a sustainable future and generate lasting impact by investing in businesses that solve global development challenges. We invest 200–250 million euros in 20–30 companies in developing countries each year. Our focus sectors include renewable energy, sustainable forestry, sustainable agriculture, financial institutions, and digital infrastructure and solutions. Today Finnfund’s investments, commitments, and investment decisions total about 1.22 billion euros, half of them in Africa. The company has over 100 employees based in Helsinki and Nairobi. For more information, please visit https://www.finnfund.fi/en.